Biotech slump is buying opportunity

Biotechnology stocks are in a bear market. The Nasdaq Biotech index (NBI) has plunged by more than 20% since its record high in February.

In April, of the index’s 121 stocks, only half a dozen or so “have managed to hold their heads above water”, say Rodrigo Campos and Caroline Valetkevitch on Reuters.com. It’s part of a wider trend.

“Investors are dumping what did well last year, and buying the stuff that did badly,” notes the FT’s James Mackintosh. ‘Old’ technology stocks, classic pharmaceuticals and emerging market shares are starting to come back into fashion in what “looks [...]

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